With so many layoffs occurring in businesses all around the world, some are bound to be executed well, and some not. Knowing the common patterns of bunglers helps decision makers steer a better course, and helps others cope with the mistakes of the bunglers. Last time, we examined how the personal perceptions of decision makers lead to trouble. In this Part II, we look at two common tactical errors.
- Death by a thousand cuts
- To limit layoffs, and to reduce their visibility, management executes small reductions weekly or monthly, forgoing press releases. They might even deny the actions, saying, "We're operating normally, making continuous adjustments as is our usual policy."
- But people recognize that layoffs are happening. Many worry they'll be next. They become increasingly determined to survive, even at the expense of others. Toxic politics emerges, wars and anxiety become common, cooperation ceases, and productivity plummets.
- At its best, this method is a form of denial; at its worst, a form of procrastination. A more straightforward approach that deals with the consequences of layoffs openly is more likely to create positive internal politics. If your company uses the thousand-cuts approach, recognize that the relative safety you feel at first is probably an illusion. Prepare yourself.
- The relief minimalism provides
usually isn't enough to
turn things around
- To avoid laying off too many, management lays off the minimum number believed necessary to survive the current situation. They plan to revisit the decision later, and if corrective action is needed, they'll say, "The situation has worsened."
- The relief minimalism provides usually isn't enough to turn things around. A little later, the cycle repeats. People remaining after the first action are shocked, but they're glad they personally survived. They recover after the first hit, only to be hit again. Recovery is slower and less complete the second time. After three or four rounds, morale and productivity are both depressed.
- As a decision maker, be certain first that the projected effect of any layoff is substantial financial relief, and second, that the resources freed in this way are committed to expand that relief. As an employee, this pattern is a signal to you that the cycle might repeat enough times to eventually target you. After a couple of cycles, ask yourself, "Do I think our decision makers are capable of getting this right?"
Distinguishing a company caught in unfortunate circumstances from a company in trouble because of mismanaged layoffs can be difficult. But by examining how well its leadership responds to severe challenges to its survival, we can sometimes determine whether organizational survival is possible. When organizational survival is in question, voluntary departure or accepting a buyout can be excellent choices. First in this series Top Next Issue
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Well, those days are over.
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- How We Waste Time: I
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Forthcoming issues of Point Lookout
- Coming February 27: Brainstorming and Speedstorming: II
- Recent research into the effectiveness of brainstorming has raised some questions. Motivated to examine alternatives, I ran into speedstorming. Here's Part II of an exploration of the properties of speedstorming. Available here and by RSS on February 27.
- And on March 6: A Pain Scale for Meetings
- Most meetings could be shorter, less frequent, and more productive than they are. Part of the problem is that we don't realize how much we do to get in our own way. If we track the incidents of dysfunctional activity, we can use the data to spot trends and take corrective action. Available here and by RSS on March 6.
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- The Power Affect: How We Express Our Personal Power
- Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.